Mida: M’sia seeks to be distribution hub for global firms12 May 2017, by The Star Online


Azman: ‘We want to attract companies involved in other activities such as e-commerce to set up their regional distribution centres

SENAI: Malaysia wants to position itself as the leading regional distribution hub for companies from all over the world to distribute their products, parts and components in the region.

Malaysian Investment Development Authority (Mida) chief executive officer Datuk Azman Mahmud said it was in talks with automotive makers to set up their distribution facilities in the country.

He said the country has the right ecosystem to attract them to choose Malaysia over other countries in the region as their regional parts distribution centres.

"We can’t reveal which countries are they from and the names of the companies but we will update you (media) from time to time,’’ Azman told reporters at the opening of BMW group’s regional distribution centre here yesterday.

He said Mida would not focus only on automotive makers.

"We want to attract companies involved in other activities such as e-commerce to set up their regional distribution centres."

Azman said the decision by BMW Group to expand its regional parts distribution centre from Port of Tanjung Pelepas opened a decade ago to Senai International Airport Free Industrial Zone here was testimony on the growing market opportunities in the region.

The RM130mil centre on over 775,000 sq ft is one of the largest BMW facility of its kind in the Asia Pacific region and it will support over 23 countries in the region as a logistics warehouse and parts distribution centre.

"Johor’s strategic location is an added advantage to attract companies from all parts of the world to set up their regional distribution centres,’ he said.

Azman stressed that Mida did not dictate investors planning to invest in Malaysia to choose certain states to set up their facilities as the final decision came from the top management of the companies.

BMW Group Asia, Pacific and South Africa senior vice president Hendrik von Kuenheim said the new regional parts distribution centre here would certainly played a key role in elevating Malaysia’s position in the regional automotive market.

He said the record sales performance achieved in Asia last year and in the first quarter of 2017, was a testament to the strength of BMW Group in the region.

"Although there are reports in economic slowdown, our key markets in the region – Malaysia, Singapore and Thailand – still doing well,’ said von Kuenheim.

The new parts distribution centre will be supplying o Malaysia, Singapore, Thailand, South Korea, Australia, New Zealand, Indonesia, Taiwan, Hong Kong, Macau, Brunei, the Philippines, Laos, Cambodia and Myanmar.

Others are Vietnam, Bangladesh, Mongolia, Sri Lanka, Tahiti, New Caledonia, Fiji and Guam. The new centre is also expected to create 120 job opportunities.